NSE

By Chris Ndibe 

The domestic equities market opened for the week on Monday on a positive note with the All-Share Index appreciating by 1.73 per cent, amid buying interest in Dangote Cement and 25 other stocks. 

Specifically, the index which opened at 34,250.74 rose by 592.70 points or 1.73 per cent to close at 34,843.44. 

Accordingly, month-to-date loss moderated to -0.6 per cent, while year-to-date gain increased to 29.8 per cent. 

Also, the market capitalisation garnered N310 billion or 1.73 per cent to N18.211 trillion compared with N17.901 trillion on Friday. 

The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are; Airtel Africa, Dangote Cement, Guinness, Lafarge Africa and BOC Gases. 

Market breadth turned positive with 26 gainers in contrast with 14 losers. 

Airtel Africa led the gainers’ chart in percentage terms with10 per cent to close at N704 per share. 

Royal Exchange and AIICO Insurance followed with 9.52 per cent each to close at 23k and N1.15 per share, respectively. 

FTN Cocoa Processors and Neimeth International Pharmaceuticals rose by 9.09 per cent each to close at 48k and N2.40 per share, respectively. 

Mutual Benefits Assurance grew by 8.33 per cent to close at 26k, while Wapic Insurance appreciated by 7.69 per cent to close at 42k per share. 

On the other hand, Prestige Assurance led the losers’ chart in percentage terms, losing 10 per cent to close at 45k per share. 

International Breweries trailed with a decline of 9.89 per cent to close at N6.47, while Cutix declined by 9.47 per cent to close at N1.72 per share. 

NASCON Allied Industries lost 9.38 per cent to close at N14.50, while Jaiz Bank shed 8.82 per cent to close at 62k per share. 

Meanwhile, the total volume or shares traded decreased by 73.86 per cent with an exchange of 208.09 million units valued at N3.70 billion exchanged in 4,154 deals. 

This was against a turnover of 796.06 million shares worth N4.46 billion achieved in 4,810 deals on Friday. 

Transactions in the shares of Zenith Bank topped the activity chart with 38.63 million shares valued at N875.68 million. 

Guaranty Trust Bank followed with 19.17 million shares worth N632.19 million, while Access Bank traded 16.14 million shares valued at N130.08 million. 

Regency Alliance Insurance traded 11.90 million shares worth N2.38 million, while Mutual Benefits Assurance transacted 9.19 million shares valued at N2.29 million.  

By Chris Ndibe 

The Nigerian Stock Exchange (NSE) has announced that the revised Stamp Duty on securities transactions to 0.08 per cent from 0.075 per cent, will take effect from Dec. 7. 

This is contained in a notice by the NSE on Thursday in Lagos. 

According to the notice, the change is necessitated by the classification of Contract Notes as an ad valorem tax by the Federal Inland Revenue Service (FIRS). 

The notice read in part: “As a responsive self-regulatory organisation, the NSE is committed to enforcing rules and ensuring compliance with regulations and other applicable government requirements. 

“While it had maintained a stamp duty rate of 0.075 per cent in line with what was obtainable in the Nigerian capital market, it is imperative that the FIRS’ stamp duty regime of 0.08 per cent on securities transactions is applied. 

“To this end, the Central Securities Clearing System Plc (CSCS) will adjust its system to implement the automated deduction of the Stamp Duty rate of 0.08 per cent from Monday, Dec. 7. 

“The Exchange has also issued the requisite guidance to Dealing Member Firms to put in place the necessary measures to ensure compliance and communicate this change to investors in a timely manner. 

“Capital market stakeholders requiring further information can refer to the market circular issued by the Exchange on 17 November captioned “Administration of Stamp Duty on Securities Transactions”, which can be accessed on NSE’s website. 

“Investors are also advised to contact their respective stockbrokers for more information or clarification,” it read.  

By Chris Ndibe

The Nigerian Stock Exchange (NSE) and the Principles for Responsible Investing (PRI) say relationships between asset owners and investment managers must be healthy for sustainable investment to thrive.

They made the assertion at the “Responsible Investing: Challenges and Opportunities for the Nigerian Investor” webinar, co-hosted by the NSE and PRI in Lagos.

Ms Nichole Martene, Head, Africa and Middle East of PRI, during her presentation said that the organisation was established to create more sustainable financial systems globally.

Martene said that though there were challenges, the NSE was ahead of its counterparts in most African countries in terms of developing a sustainable investment environment.

According to her, Responsible Investment is a strategy and practice to incorporate Environmental, Social and Governance (ESG) factors in investment decision and active ownership.

She said that Responsible Investment (RI) would help asset owners to maximise their returns in a way that was sustainable and responsible in the long run.

She expressed the belief that capacity building on responsible investment data, tools and opportunities should be the core of exchanges to educate investors and asset owners.

The Head, Shared Services Division of NSE, Bola Adeeko, said that there was the need for a stronger concerted approach to leverage individuals and organisations to forge ahead leaving no one behind.

Adeeko said that NSE was committed to playing it’s role for sustainable economic growth as well as ensuring sustainable business practices amid the COVID-19 pandemic.

“In spite of the prevailing finance shortcomings, COVID-19 pandemic presents unforeseen challenges that have abruptly disrupted the implementation efforts towards the Sustainable Development Goals.

“It is clear that we need to adopt a more radical approach to move the needle, we need a stronger and more concerted collaborative approach that leverages the unique strength of individuals and organisations to forge transformative pathways that create a world where no one is left behind.

“As a member of the Sustainable Stock Exchange Initiative (SSEI) and World Federation of Exchanges (WFE), the NSE is committed to playing it’s role for sustainable economic growth of ensuring sustainable business practices,” he said.

“We recognise the importance and urgency to rewire investment process to ensure that capital acts for the long term by create innovative financial structures that better serves sustainable businesses and the economy at large.

“Our collaboration with PRI will serve as one of the pathways to achieving this objectives. We will continue to partner with PRI in engagements to build a better understanding on the most pressing challenges and opportunities for responsible investments of ESG comparatives in Nigeria.”

Adeeko also said that such engagements wold help to foster a robost and healthy financial ecosystem.

Mr Jude Chiemeka, Divisional Head, Trading Business, NSE, said that Nigeria must urgently create friendly policy framework that will attract Foreign Direct Investments.

Chiemeka said: “We have been active in improving corporate governance among listed companies.

“The corporate governance rating system of the NSE is designed to rate companies listed on the NSE based on their corporate governance and anti-corruption culture, thereby improving the over all business culture and trust in Nigeria’s capital market and business practices.

“Nigeria urgently needs to create friendly policy framework that will attract foreign direct investments.

“The exchange will continue to support the market through initiatives such as the collaboration with PRI to ensure that key market stakeholders are positioned to leverage the big shift to the responsible investments.”

Ms Anastasia Guba, Director, Northern Europe, Middle East and Africa of PRI, said that RI would create a sustainable market and a prosperous world.

By Chris Ndibe

Activities at the nation’s bourse closed southward on Tuesday for the second consecutive days, with market capitalisation dropping N279 billion on continuous profit taking.

The market capitalisation dipped N279 billion or 1.53 per cent to close at N17.892 trillion against N18.171 trillion.

In the same vein, the All-Share Index lost 531.25 points or 1.53 per cent to close at 34,242.83 from 34,774.08 posted on Monday.

The downtrend was further driven by losses in medium and large capitalised stocks among which are Nestle, Dangote Cement, Nigerian Breweries, Cadbury and International Breweries.

Mr Ambrose Omordion, the Chief Operating Officer of InvestData Ltd., attributed the development to profit-booking across sectors after eight straight weeks of market rally.

Omordion said that the pullback was creating another new buy-in opportunities for the market.

“We expect the NSE index to rebound before the week runs out after the profit taking to sustain uptrend till early second quarter of 2021,” he said.

Market sentiment as measured by market breadth, was negative as 30 stocks declined, relative to 17 gainers.

Oando and Wapic Insurance led the losers’ chart in percentage terms, dropping 10 per cent each to close at N3.24 and 45k per share, respectively.

Portland Paints & Products trailed with a loss of 9.97 per cent to close at N2.62 per share.

Livestock Feeds depreciated by 9.92 per cent to close at N1.18 and Cadbury lost 9.85 per cent to close at N9.15 per share.

Similarly, BOC Gases topped the gainers’ chart in percentage, posting 9.96 per cent to close at N5.85 per share.

GlaxoSmithKline came second with 9.56 per cent to close at N7.45 per share.

Conoil appreciated by 9.45 per cent to close at N20.85, while Mutual Benefits Assurance and Union Diagnostic & Clinical Services rose by 7.69 per cent each to close at 28k per share each.

However, the total volume of trades increased by 1,299 per cent as investors bought and sold 9.36 billion shares, valued at N12.02 exchanged in 8,712 deals.

This was in contrast to 668.53 million shares worth N7.85 billion traded in 10,319 deals on Monday.

Transactions in the shares of UACN Property Development Company topped the activity chart with 8.52 billion shares valued at N5.96 billion.

Jaiz Bank followed with 304.73 million shares worth N222.22 million, while Transcorp sold 95.93 million shares, valued at N97.29 million.

FBN Holdings accounted for 82.41 million shares worth N613.82 million, while United Bank for Africa traded 52.84 million shares, valued at N440.56 million. 

By Chris Ndibe 

Nigeria’s bourse rose marginally by 0.03 per cent following sustained bargain hunting. 

Specifically, the All-Share Index increased by 8.41 points or 0.03 per cent to close at 30,741.88 against 30,733.47 reported on Tuesday. 

Accordingly, Month-to-Date return and Year-to-Date gain were unchanged at +0.7 per cent and 14.5 per cent, respectively. 

Also, the market capitalisation garnered N3 billion or 0.03 per cent to close at N16.068 trillion from N16.063 trillion. 

The uptrend was impacted by gains recorded in large and medium capitalised stocks, amongst which are; Chemical and Allied Products, FCMB Group, Guaranty Trust Bank, Dangote Sugar Refinery and Caverton Offshore Support Group. 

Market breadth closed positive with 12 gainers compared with 11 losers. 

Consolidated Hallmark Insurance topped the gainers’ chart in percentage terms with 8.82 per cent to close at 37k per share. 

Prestige Assurance followed with 7.41 per cent to close at 58k, while FCMB Group rose by 5.17 per cent to close at N3.05 per share. 

AIICO Insurance rose by 4.82 per cent to close at 87k, while Japaul Oil and Maritime Services appreciated by 4.35 per cent to close at 24k per share. 

Conversely, Mutual Benefits Assurance led the losers’ chart in percentage terms by 4.76 per cent to close at 20k per share. 

Wema Bank followed with a loss of 3.13 per cent to close at 62k, while Julius Berger declined by 2.57 per cent to close at N17.05 per share. 

GlaxoSmithKline lost 1.67 per cent to close at N5.90, while Honeywell Flour Mill shed 0.97 per cent to close at N1.02 per share. 

However, the total volume of shares traded declined by 14.77 per cent to 286.45 million shares valued at N3.09 billion exchanged in 2,889 deals. 

This was in contrast with a total of 336.09 million shares worth N3.89 billion achieved in 5,575 deals on Tuesday. 

Transactions in the shares of Access Bank topped the activity chart with 145.01 million shares valued at N1.17 billion. 

Zenith Bank sold 21.87 million shares worth N477.85 million, while United Bank for Africa accounted for 17.04 million shares valued at N130.01million. 

Mutual Benefits Assurance traded 13.04 million shares worth N2.61 million, while Stanbic IBTC Holdings transacted 11.31 million shares valued at N520.39 million.